Texmaco Rail Big Bet On Africa, Defence & Metro | Massive Growth Roadmap Revealed | Business News

追加: 2026-05-21

[00:00:00]And shifting focus, let's talk about Texmaco Rail. You know, the numbers came out a couple of weeks ago, but since then we've seen a very heavy ramp-up of auto wins by the company. So, let's discuss auto wins. Let's talk about earnings, and to do that we have on board Mr. Sudipta Mukherjee, the MD, the managing director at Texmaco Rail and Engineering joining us. Mr. Mukherjee, hi. Morning. Thank you for your time.

[00:00:20]Let's first start by talking about the landmark 4,000 crore rupee plus South African contract order that you've got.

[00:00:26]It marks a major milestone for the company. Now, given that raw material volatility and localization complexities in the region still persist, how are you looking at this auto win translate into the top line, and how is this going to aid your EBITDA target?

[00:00:43]So, good morning.

[00:00:46]I mean, Texmaco has been the largest exporter of rolling stock and other companies out of India. And in that region, we have so far working with 16 countries.

[00:01:02]Uh so, this is nothing new, but yes, in terms of scale it is very significant.

[00:01:09]And you know that off late last year, we declared that we want to also enter into the life cycle business of the rolling stock we supply to.

[00:01:20]And last year we had a similar such contract where we had the maintenance setup we were supposed to create in Cameroon.

[00:01:29]Uh so, that is in progress, and the supplies have started, and already we are setting up our uh stuff over there.

[00:01:37]So, in that way, so these are all in the region, and in South Africa we're also poised to uh localize to the level it is required for as I mean, going beyond the spirit of the statute. Because for us it's more makes sense when it makes sense for the business, then we feel that that region is subsequently going to grow.

[00:02:01]And so and we we we are all poised to do that and the execution of these three expect to start in the next financial year.

[00:02:12]Of course, certain preparatory work and including the prototype and the approval process will happen this year so far particular to this contract is concerned.

[00:02:22]But in that region, our supplies and our setups are ongoing.

[00:02:28]And we we hope that it is going to be on a continuous mode in terms of having more pipeline or inflow in the coming days.

[00:02:40]And in terms of of course the These are all turnkey projects and specialized specialized solution and offerings from our part.

[00:02:50]So this definitely has much more uh return uh or contribution in terms of our delivery.

[00:02:58]Because it it goes right from concept to design.

[00:03:02]Uh the localization aspect is there after sale. And here also it is for 15 years maintenance. So uh the contribution we expect to be very good.

[00:03:15]All right, good to hear about it. Mr. Mukherjee, morning. This is Srishti also joining in. But you mentioned shifting your strategic focus from wagon volumes to wagon value. When can we see this these changes leading to increase in your margins?

[00:03:33]So Srishti, if you see that in the whole growth or vision story of Texmaco, so this value part is being very carefully woven into the whole plan.

[00:03:46]And this has already started reflecting in while we are the largest producer of rolling stock and its components even for the domestic market, we also remained the largest exporter.

[00:04:01]Uh and uh there, of course, consciously we have put an effort and uh in terms of improving our capability. So, Texmaco is the only company who has all the required licenses to uh work I mean, we work for America, we work for Europe, we work for Africa, we work for other Australia, we work for some part of other countries in Asia. Uh so, we have all the required licenses and capabilities, and we have very consciously uh created these capabilities within the organization.

[00:04:37]Uh so, this is this has remained a theme which we have invested in last couple of uh years.

[00:04:45]And uh if you see that we have also come up with a global capability center in and around railways. Uh so, perhaps this is one of its kind in the world uh to begin with.

[00:04:56]And we have uh started it in a modest way in Faridabad.

[00:05:01]And uh I'm happy to let you know that we have already got some international assignments which our team is working to deliver.

[00:05:09]Uh so, I mean, we feel that we are even I mean, very good uh position to uh take advantage uh out of this.

[00:05:18]Uh so, this is what I had to say on this.

[00:05:22]Okay, understood. Uh Mr. Mukharji, let's talk to you talk about your capex plans.

[00:05:26]You've announced a capital expenditure of 1 and 1/2 to 2,000 crores uh through uh 2030. Can you talk to us about how you plan on funding this and the timeline of capex over the next 12 to 24 months, particularly regarding the defense and metro mobility businesses?

[00:05:43]Yeah, so the whole growth plan was uh see, we we we uh I just said the context that we have divided it into three parts basically.

[00:05:53]So one is the reinforcing the core business of Texmaco which is related to freight wagons steel castings the freight wagon and passenger mobility components and our infrastructure division which also include this track laying maintenance signaling and electrification. So these three main core and we believe that this is has a substantial traction in terms of the requirement of domestic as well as globally.

[00:06:22]So this will continue to grow other than that we also envision to enter into certain adjacencies like the passenger mobility and its few key components.

[00:06:34]So that is the propulsion and the power electronic items and also in signaling we are going into certain component development like the electric interlocking yes. So today suppose we are dependent on procurement from the market but we feel that the new technology there is a scope of improvement of technology in this space and there will be a good demand decent demand within the country and will also serve to globally because we are talking about some niche development in those areas out of India.

[00:07:11]And this is the adjacent part of it and also the wheels we are looking into in a different way. And third comes our breakaway business which we are focusing to go into defense again not on the commodity sphere of defense but few niche areas we have identified and also some part of work around in and around renewables.

[00:07:32]So this is the whole team which we want to achieve by 2030 and we believe that with this success of with these with the milestone and we have a clear cut plan.

[00:07:42]We will be able to at least double our revenue and our EBITDA contributions or EBITDA margins which we are continuously progressing. Suppose today it is in the range of 10% so on a growth path towards towards 2030 we want to achieve at least consistently 15% Really good in terms >> And so far the capex is concerned, yeah. So this is we we feel that we'll be generating enough money from the businesses what by strengthening the core and getting into few low hanging businesses progressively. So that will generate enough money for us and keeping the debt to EBITDA ratio very sound which is also sound today.

[00:08:31]But majority of it we should be able to generate from within and definitely on a significant change we'll look forward something which we'll plan at the time when we need to plan.

[00:08:42]>> Okay. Mr. Mukati that sounds really good in terms of your guidance. But lastly I just want to get a better sense on the defense foray. Can you talk to us about what kind of opportunities are you seeing? What segments within the defense basket are you looking to operate in and what is the timeline to set up this subsidiary?

[00:09:00]So the timeline to set up this sub-subsidiary should be happening within this financial year itself.

[00:09:08]And I because these are very strategic subjects so I do not want to mention and sound but I can only tell that in next one or two quarter we will be able to hear that what exactly we are able to do. But this will include land and water primarily as a sphere and these are I mean of course would be under the vision of the government of India to make in India and make out of India and it would be very with collaboration with some global top technology partners.

[00:09:50]All right. Good to hear about it. But with this Mr. Mukharji, we let you go.

[00:09:54]So good having you on the channel today.

[00:09:56]Thank you so much for your time.

[00:09:58]Thank you so much.